Investing.com -- Jack In The Box Inc (NASDAQ:JACK), a Southern California-based fast food chain, announced on Monday afternoon that its Board of Directors has authorized an additional $200 million stock buyback program that will begin next year and will expire in November, 2017.
The company said Monday that it has repurchased about 3.7 million shares in Fiscal Year 2015, including approximately $65.5 million over the fourth quarter. The actions completed a $100 million stock buyback program authorized by Jack In The Box's board in May.
“Over the last five years, we have demonstrated our commitment to returning our growing free cash flow to shareholders through the purchase of $1 billion in stock and the initiation of a dividend in 2014. The additional authorization coupled with the 50 percent increase in our dividend announced in May underscores the confidence both the management team and our Board of Directors have in our business model and growth plans," Jack in the Box CEO Lenny Comma said in a statement.
"The amendment to our credit facility that was announced in July also provides us with more than $400 million of additional borrowing capacity to support our strategic priorities and comfortably maintain leverage within a 2 to 3 times range.”
Last month, Jack In The Box reported third quarter earnings from continuing operations of $28.4 million or 0.75 per diluted share for the 13-week period ending in early-July. Over the same period in 2014, the fast food chain posted earnings of $26.1 million or 0.65 per share. The company also enjoyed strong same-store sales at its Qdoba Mexican Grill division during the quarter, which increased by more than 7.5% on a year-over-year basis.
Shares in Jack In The Box gained 0.99 or 1.32% to 76.00 in after-hours trading.